Deciding to have children is a very exciting step in your life, but it can also be quite daunting. There are lots of practical considerations about how pregnancy and parenting can affect your day-to-day life – such as your earnings – that make it wise to put in place a financial checklist before starting a family. Here is our starting a family checklist to consider when you’re thinking of having a baby, to see if you’re in good financial shape to grow your family:

1. Do you know what your essential household expenditure is?

Many people don’t know exactly what their outgoings are as it is, which makes it very difficult to plan for having a baby.
A good starting point is to do a financial breakdown for the past three months to get an accurate picture of your monthly income, what you spend on essentials and your other outgoings.
This will help you identify where you can cut back in order to save for your new arrival, and also show you what you will need to bring in to cover the cost of living whilst on maternity leave .

2. How much will you need to spend on baby essentials?

Kids don’t come cheap, so it’s important to understand up-front what items you will need to purchase during pregnancy and early childhood.
This doesn’t just mean stuff for the baby; you may need to purchase a new car that’s big enough for a growing family, or renovate part of your house to create a nursery.

3. Will you need to change your health insurance premium?

When you start a family, you may need to update certain financial policies such as your health insurance premium, to make sure you’re covered during this new phase in your life – and baby is protected, too.

4. What’s your long-term plan – and what will it mean for your finances?

Although it’s impossible to know what your future will hold until the baby arrives, think carefully about your long-term plan, and how to make that work financially.
For example, if you want to stay at home with the baby, how are you going to pay the bills? If you are going back to work, can you afford the cost of childcare?

5. How will you save for the future?

When you start a family there is a great deal more pressure placed on your household – financially and emotionally. It’s easy to become so buried in dealing with the day-to-day that you forget to think about the future.
However, your child is going to reach certain milestones in their life, many of which will be costly to you. The sooner you can start saving for the future, the more comfortable you can live your life further down the line.
This doesn’t have to be as overwhelming as it sounds – particularly if you enlist the support of a qualified financial adviser.

6. Keep reviewing your situation

Having a child is an exhilarating adventure but, as any parent knows, the situation can change at the drop of a hat. Therefore it’s important to regularly check in with your finances, to see if you’re doing everything possible to provide a secure, stable environment to welcome new life into the world.
When you need to think about your financial plan, contact us to arrange your own financial review.

When you need to think about your financial plan, contact us to arrange your own financial review.

 

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